Or. Admin. Code § 836-060-0060

Current through Register Vol. 63, No. 11, November 1, 2024

Section 836-060-0060 - Disclosure

(1) When a premium or identifiable charge is payable by a debtor for credit insurance coverage offered by a creditor, disclosure shall be made to the principal debtor, at the time the insurance is applied for, of the optional nature of the coverage, the eligibility requirements, and the policy limitations and exclusions. These disclosures may be the federal Truth-in-Lending disclosure accompanied by a notice of proposed insurance or the insurance policy or certificate. The disclosure may be made pursuant to the loan disclaimer requirements of the federal Truth-in-Lending law or regulations adopted thereunder, a similar disclosure requirement that is audited by an agency of a state or the federal government, accompanied by a notice of proposed insurance or the insurance policy or certificate. If disclosure is not thus made, disclosure must be given in the form and wording of the disclosure form set forth in Exhibit 1 to this rule. The insurer may modify the disclosure form required under this section as appropriate for the loan involved. Before using the modified disclosure form, the insurer must obtain approval of the form from the Director.

(2) When the term of a loan is not the same as the term of the insurance, the policy or certificate must disclose prominently, in bold letters, the limit to the coverage. EXHIBIT 1(OAR 836-060-0060)

DISCLOSURE FORM OPTIONAL CREDIT INSURANCE

Credit life insurance and credit health insurance provide protection for both the buyer and seller.

You are entitled to a copy of the policy or certificate of insurance within thirty days after credit is extended.

You ARE NOT required to buy credit life insurance or credit health insurance from any particular insurance company or agent. You may use existing policies if insurance is required as additional security.

If you buy credit life insurance, the proceeds will be used to reduce or pay off your unpaid loan or indebtedness when you die. Any insurance proceeds in excess of the amount required to pay off the loan will be paid to your beneficiary or estate.

If you buy credit health insurance, the proceeds will be used to reduce or pay off your unpaid loan or indebtedness if you become incapacitated.

READ your policy or certificate CAREFULLY for what the policy DOES NOT cover. For example: Some policies do not cover the total loan amount or the entire period of coverage. Some policies do not pay disability benefits unless you are disabled for 14 or 30 days or if you have a preexisting condition. Some policies will not provide coverage if you are age 66 or more or when you reach 66. See the policy for details on these matters.

You may not be eligible for credit health insurance unless you now work at least thirty hours per week, unless unemployed solely due to seasonal lay-off.

By initialing below, the customer, debtor or lessee acknowledges acceptance or refusal of credit life or credit health insurance.

ACCEPTS CREDIT LIFE INSURANCE

DECLINES CREDIT LIFE INSURANCE

ACCEPTS CREDIT HEALTH INSURANCE

DECLINES CREDIT HEALTH INSURANCE

Or. Admin. Code § 836-060-0060

IC 7-1982, f. 2-12-82, ef. 6-1-82; Repealed by IC 13-1982, f. 11-30-82, ef. 12-1-82; IC 1-1983, f. 1-28-83, ef. 2-1-83; ID 24-1990, f. 12-28-90, cert. ef. 1-1-91

Stat. Auth.: ORS 731, 742, 743 & 746

Stats. Implemented: ORS 743.015, 743.376, 743.377 & 746.240